How to read your profit and loss in five minutes

Start at the bottom

The last line, net profit, is what the business earned after expenses this month. It's not the same as cash in the bank: loan payments, owner draws and money customers still owe don't show up here.

Then look at income

Is it about what you expected? If income looks low, check whether a big payment is still outstanding, or whether payouts were recorded net of fees.

Then your three biggest expenses

For most small businesses, three lines make up most of the spending: people, rent, and the main cost of delivering the work. If one of those moved a lot, find out why.

Compare the right months

Many Florida businesses are seasonal. Comparing August with July can look alarming when August with last August looks fine. Same month, last year, is the fairer test.

That's it. Five minutes, once a month, and you'll know more than most owners do about their own business.